Summer has always been a hype time for video games thanks to all the industry showcases. Summer Game Fest, the Xbox showcase, and a few others highlighted some incredible titles for everyone to look forward to, but we mustn’t forget that the industry as a whole is in serious turmoil. In fact, as of this week, there have been more layoffs in the past six months than in all of 2023.
As spotted by Polygon, this is according to a blog by technical artist Farhan Noor that tracks industry layoffs. While these are only estimated figures, the data highlights how dire things are at the moment. By the end of 2023, approximately 10,500 people working in the games industry lost their jobs. There were early signs that these cuts weren’t going to slow down in 2024 and, as of this week, an estimated 10,800 people have been let go since the beginning of the year.
What tipped this year’s figures past the landmark was the Tencent-owned Sumo Group’s decision to reduce staff by up to 15%, meaning roughly 250 employees would’ve been affected (via GamesIndustry.biz). One of its subsidiaries, Timbre Games, was shut down entirely, as confirmed by this LinkedIn post. The studio was founded only three years ago and had yet to release a single game. These layoffs also came one day after a “busy weekend” where Sumo Group shared new announcements for its upcoming projects during Wholesome Direct and the PC Gaming Show.
Obviously, Sumo Group shouldn’t bear all of the blame here. Many other companies are equally responsible for gutting their studios and firing staff, including the likes of Microsoft (which infamously shuttered three studios and absorbed another a couple of months ago) and Take-Two Interactive.
There are a number of factors responsible for all this, but it doesn’t change the fact that the future of the industry is looking bleaker than ever. Many people who’ve been let go may very well never work in video games again, which means a lot of lost experience. It’s reached a point where it’s become difficult to recommend anyone pursue a career in game development. All the while, company executives offer platitudes about how such layoffs are difficult but necessary decisions. That’s easy enough to say when you’re not the one out of work.
